Hospital officials this month will feel relief when they receive nearly $500 million in overdue payments from the state. But some hospital administrators will be forgiven if they don't jump for joy.

Hospital officials said the payments due this month don't provide a remedy for the higher taxes they're paying and lower reimbursements they're receiving for medical services.

Jeff Austin from the Maine Hospital Association said it's "not all roses."

Austin said state hospital taxes have gone up, costing hospitals about $20 million a year and the Legislature cut outpatient Medicaid reimbursement rates, costing them an additional $15 million to $20 million a year. On top of that, mandated federal budget cuts that went into effect this year cut Medicare reimbursement rates by 2 percent, costing another $20 million or so annually.